Introduction to Tax Residence

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Chapter 1 introduction & tax residence •Direct taxes – taxes paid directly to government (income tax , RPGT) •Indirect taxes – taxes paid to government via 3rd party( sale,service) •Income tax –scope of charge( S3 of ITA) has been modified by ‘’tax exempted’’ Income tax shall be charged for each y/a upon income of any person accruing in or derived from MY or received in MY from outside MY Income known as revalue gain( capital gain never go for inc tax Person=individual , Co(chargeable person) partnership is not C.P •2 type of chargeable person which are resident and non resident  Resident=individual , specialised industry Co and other Co 1. Individual and other Co— MY derived subject to income tax Foreign derived:…show more content…
Gross income 5. aggregate income 3. Adjusted income 6. total income 7. chargeable income        Basic period (GR) individual can only use calendar yr basis but company is allowed to have any financial year end Gross income – refer to all taxable /chargeable receipts before deducting any expenses and this are separated under each sources of income stated in section 4(a) to 4(f) Adjusted income – ITA provided deduction rule which is Expenses must be ‘’deductible’’/’’allowable’’ to get deduction S33 of act put down the ‘’condition’’ an expenses has to fulfilled to get deduction S34 are special deduction given to business S39 are expenses which are specifically disallowed for deduction 6      Current business loss claim after aggregate income If c/y loss > aggregate income -- any excess c/f become unabsorbed biz loss claim after aggregate business stat income Statutory income – capital expenditure does not qualify for deduction Dispose asset – gain on disposal – balancing charge Allowance can only be utilised within same source of income  Aggregate income – all statutory income add together Current business loss Donation  Total income less personal relief become chargeable income   7  1.     2. 3. Donation – ITA provided certain types of donation qualify for deduction against aggregate income S44(6) –Any gift of money to government ,
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